How to Register Your Company in Saudi Arabia: Expert-Backed Guide
Saudi Arabia in 2024 - An amazing number tells an amazing story. Public investment grew by 79% over last year, with 121,000 commercial registrations issued in Saudi Arabia during the second quarter alone, bringing the total number of commercial registrations to more than 1,518,000 across all regions of the Kingdom. [1]
Saudi Vision 2030 has effectively transformed the Kingdom into a thriving business hub that creates unprecedented opportunities for global entrepreneurs and has given movement to the Saudi market in the year and the Middle East in particular. The process of registering a company in Saudi Arabia may seem like a complex maze of regulations, requirements and procedures to many foreign investors due to their lack of knowledge of some of the systems, registration methods and the best ways to open a company in Saudi Arabia.
Your plans to register a company in Saudi Arabia as a small business owner or establish a large company by establishing a company in Saudi Arabia need a clear roadmap to guide the process effectively. Each step requires guidance from experts who have the knowledge and familiarity with this method - from choosing the right corporate entity for the foreign investor to completing the mandatory registrations with all government agencies.
The simple and practical steps will help you understand the complex procedures for establishing a company in Saudi Arabia. Your Saudi business dreams can become a reality with the right approach!
Understanding Business Structures in Saudi Arabia
Saudi Arabia offers a variety of business registration structures and entities. The Saudi system allows businesses to choose from different types of entities, each with its own benefits and requirements.
Foreign investors typically choose from the following common business structures:
- Limited Liability Company - requires a capital of not less than 25 thousand Saudi Riyals [1] and it is not required to deposit the capital in the investor's bank account.
- Joint Stock Company - requires a capital of not less than 500,000 thousand Saudi Riyals for private companies [1] and the paid-up capital is not less than a quarter.
- Branch Office - requires a capital of not less than 25 thousand Saudi Riyals [1]
- Representative Office - does not require a capital of not less than 25 thousand Saudi Riyals
- It should be noted that each type of license has its own requirements, such as a commercial license for import and export, a professional license, and a real estate license if the company is 100% foreign owned.
Foreign investors can now fully own wholesale and retail trading companies with a minimum capital of SAR 30 million [2]. These companies must show their presence in at least three regional or global markets [2].
The new Investment Law of 2024 has made things easier by removing the need for foreign investment licenses [3]. This law ensures equal treatment of domestic and foreign investors while protecting intellectual property rights.
Industrial projects need a minimum capital of SAR 25 thousand, and agricultural projects require SAR 25 thousand. These requirements might change based on your business activity and ownership structure.
Most foreign investors choose the LLC structure because it offers flexibility and limited liability protection. An LLC can have 2-50 shareholder, and their liability extends only to their contributed capital.
Essential Pre-Registration Requirements
Basic Pre-Registration Requirements
Want to register your company in Saudi Arabia? Let’s take a look at what you need to get started.
Foreign investors need to obtain an investment license from the Ministry of Investment. You will need three important documents to obtain this license:
- A copy of your home country’s commercial registration with the Saudi Embassy [5] or Apostille certification.
- Last year’s financial statements from an internationally recognized law firm with the Saudi Embassy [5] or Apostille certification.
- The company’s articles of association with the Saudi Embassy [5] or Apostille certification.
Any company registering in Saudi Arabia needs a physical office space. Saudi Post must register this location as your official mailing address and this is where Motaded Limited comes in, providing workspaces as well as virtual office services and a national address for foreign investors free of charge for a limited time.
The based on what type of business you want to start:minimum investment varies
- Industrial projects: 25 thousand Saudi riyals for the capital mentioned in the commercial register of the foreign company and it is not required to deposit it. The operating cost is not included in the capital, as the foreign investor has the right to start from 25 thousand Saudi riyals to any capital number that suits his project. Here it must be clarified that the capital is the number mentioned in the commercial register and not the operating capital.
- Agricultural projects: 25 thousand Saudi riyals for the capital mentioned in the commercial register of the foreign company and it is not required to deposit it.
- Commercial projects: For import, export and e-commerce, the investment amount must not be less than 30 million Saudi riyals for the first year and 300 million Saudi riyals during the first five years. It is also necessary to know the difference between the capital and the investment amount, as the required amount is the movement of the bank account and the total income of the company must be 30 million Saudi riyals during the first year, including operation and establishment costs, etc., and also during the first five years the total income must be 300 million Saudi riyals, and assets such as goods or others are included in the investment amount.
- Real estate projects: Any real estate project that is established to build apartments, villas, commercial buildings, or sell any real estate property, the investment amount must be 30 million riyals, including the value of the land and the cost of construction and establishment.
- Foreign participation under the foreign investment system: 25 thousand Saudi riyals for most investment licenses.
Note: A distinction must be made between the investment amount and the capital.
Certified professionals must translate all official documents to Arabic [8]. On top of that, you need attestation from the Ministry of Foreign Affairs and the Saudi Embassy [5].
Opening a local bank account in Saudi Arabia makes sense. You'll use this account to deposit your original capital and handle your business transactions [9].
Note that professional services firms must have at least 25% of licensed Saudi partners. In the field of financial, accounting, legal, administrative, engineering consulting and any professional activity, the foreign investor must be a partner with a Saudi person or company that has a professional license approved by Saudi Arabia.
Step-by-Step Registration Process
Now that we’ve covered the requirements, let’s move on to the actual registration process. Here’s a step-by-step guide to help you set up your business in Saudi Arabia.
You’ll need to get your MISA license approved, which typically takes 5-7 business days[10]. The next important steps are:
1. Ministry of Investment:
- MISA License Application
- Issuance of Investment License
- The process takes 5-7 business days
2. Ministry of Commerce:
- Reservation of the company’s trade name in Saudi Arabia.
- Drafting the company’s articles of association.
- Issuing the company’s articles of association.
- Issuing the company’s commercial registration in Saudi Arabia.
- Opening an account at the Saudi Chamber of Commerce in the investor’s city.
- Authorization of the signature of the general manager or the continuance at the chamber of commerce.
You must complete the following mandatory registrations:
The Chamber of Commerce needs to register you within 30 days of obtaining your commercial registration
3. Ministry of Human Resources:
The Ministry of Human Resources is the third point for a foreign investor wishing to open a company in Saudi Arabia
Where the company must be registered and an account opened for it in the labor office and the Qiwa platform activated and then the investor visa must be issued in Saudi Arabia or the company's general manager and the matter must be completed by the Ministry of Foreign Affairs and the Saudi embassy in the investor's country.
4. General Organization for Social Insurance:
Registration with the General Organization for Social Insurance (GOSI) is a basic point in registering businesses in Saudi Arabia as the company in Saudi Arabia must be linked to the investor in the wage protection system and Saudization as well as Nitaqat.
5. National address of the company in Saudi Arabia:
Any company in Saudi Arabia must have a national address from the beginning of the first step of the Ministry of Investment until the last step, which is the bank account, and the company can provide multiple services for the temporary national address for foreign companies wishing to register a company in Saudi Arabia.
6. General Authority of Zakat and Income:
Registration with the General Authority of Zakat and Income (GAZT)
After completing the above steps, the investor wishing to open a company in Saudi Arabia and register a commercial register in Saudi Arabia must have an account with the General Authority of Zakat and Income. Here, Mute offers all its expertise to obtain the registration certificate for the General Authority of Zakat and Income as well as the value-added certificate for foreign companies in Saudi Arabia.
7. Bank account:
A commercial bank account is very important for your operations and for registering the company in Saudi Arabia. The new Saudi Commercial Register Law requires all merchants to operate through dedicated commercial bank accounts. Opening a bank account in Saudi Arabia for foreign companies ranges between 3 to 4 business days and major Saudi banks will need these documents from you:
The complete establishment process takes 6 to 8 weeks [13] with Mute Company as our relationship with government agencies has become well-established and approved as an accredited management consultant with them in the Saudi Ministry of Investment and other government agencies in Saudi Arabia.
Note that proper records must be kept for all registrations and certificates. These documents will be vital for your future business operations and annual renewals.
Conclusion
has become a top destination for global businesses, thanks to growing foreign investments and business-friendly reforms. Our extensive work helping companies establish their presence in the Kingdom has taught us what makes registration successful.Saudi Arabia
Businesses must first select an appropriate structure - LLC, Joint Stock Company, or Branch Office. These structures have specific capital requirements and regulatory obligations. The LLC route attracts most foreign investors because it offers flexibility and simple management.
Proper documentation ensures smooth registration. Companies need authenticated commercial registration copies, financial statements, and Arabic translations of all official documents. Registration takes 6-8 weeks and includes MISA licensing, Ministry of Commerce registration, and tax documentation.
The process demands careful planning and expert guidance. Ready to begin your business venture in Saudi Arabia? [Get your free consultation] with our experienced team today.
Note that Saudi Arabia's Vision 2030 economic diversification creates excellent opportunities for foreign businesses. Working with qualified professionals and following these guidelines will lead to successful company registration.
FAQs
Q1. What are the main steps to register a company in Saudi Arabia? The main steps include obtaining a MISA license, registering with the Ministry of Commerce, obtaining a Commercial Registration certificate, registering for taxes, and setting up a bank account. The entire process typically takes 6-8 weeks to complete.
Q2. Can foreign investors own 100% of a company in Saudi Arabia? Yes, foreign investors can now own 100% of wholesale and retail trading companies in Saudi Arabia. demonstrate presence in at least three regional or global markets.
Q3. What is the minimum capital requirement for registering a company in Saudi Arabia? The minimum capital requirement varies depending on the type of business. For a Limited Liability Company (LLC), it's SAR 25,000. Industrial ventures require SAR SAR 25,000, while agricultural projects need SAR 25,000.
Q4. What documents are required to register a company in Saudi Arabia? The main documents include a copy of your commercial registration from your home country, financial statements for the previous year, Arabic translations of all official documents, and the company’s articles of association. They must be certified by the Saudi embassy or by Apostille.
Q5. How long does it take to obtain a MISA license in Saudi Arabia? Obtaining a MISA (Ministry of Investment of Saudi Arabia) license typically takes 5-7 working days for approval. This is one of the first steps in the company registration process.